4:52 am
  Local News
  State / National / World
  Opinion / Letters
  Arts / Entertainment
  Submit Event
  Comics / Games
  DJ Designers
  Advertise With Us
  About Us

Check out our archive of Dining Guides - Yum!

Stock drop on mixed earnings; Caterpillar sinks
October 23, 2013, 05:00 AM The Associated Press

NEW YORK — Mixed earnings reports pushed stocks lower in early trading on Wednesday.

Caterpillar slumped after the maker of mining and construction equipment said its third-quarter earnings plunged. The company cut its earnings forecast again. The stock dropped $5.252, or 5.9 percent, to $83.91.

Boeing jumped after raising its profit estimate for the full year as deliveries of commercial planes continue to accelerate. The plane maker's stock climbed $6.87, or 5.6 percent, to $129.35.

The Standard & Poor's 500 index fell back from a record after surging 6 percent over the previous two weeks. The index climbed as lawmakers inched toward a deal to end a 16-day partial government shutdown and avert a potential U.S. default. Investors also became more convinced that the Federal Reserve will refrain from easing back on its economic stimulus until possibly next year.

"We need to let a little bit of air out of the balloon here," said Alec Young, a global equity strategist at S&P Capital IQ. "We've seen a huge rally, so there's a bit of short-term-exhaustion."

The S&P 500 dropped 12 points, or 0.7 percent, to 1,742, putting the index on track for its first down day in six.

Energy stocks fell the most as the price of oil dropped to its lowest in almost four months. Oil slipped $1.95, or 2 percent, to $96.38 a barrel.

The Dow Jones industrial average fell 65 points, or 0.4 percent, to 15,402. The Nasdaq composite dropped 34 points, or 0.9 percent, to 3,895.

Many analysts and economists expect the Fed to refrain from easing its stimulus until next year to help the economy maintain its momentum after the government shutdown. The central bank is currently buying $85 billion in bonds every month to keep interest rates low. That stimulus program has underpinned a 4 ½ year rally in stocks.

In government bond trading, the yield on the 10-year note fell to 2.49 percent from 2.51 percent late Tuesday.

In commodities, the price of gold fell $9.50, or 72 cents, to $1,333.20 an ounce.

Among other stocks making big moves:

— Corning surged $1.65, or 10.7 percent, to $16.98 after the company announced a new tie-up with a Samsung Electronics subsidiary that will boost the glass maker's earnings immediately.

— Safeway rose $1.92, or 5.8 percent, to $34.82 following a report from Reuters late yesterday that "a handful" of buyout firms, including Cerberus Capital Management, are exploring a deal for all, or part, of the supermarket chain.

— Broadcom fell $1.95, or 7.2 percent, to $25.19. The communications chip maker reported adjusted results that exceeded Wall Street expectations, but the company's earnings forecast disappointed investors.



Tags: percent, earnings, after, maker, dropped, stocks,

Other stories from today:

Stock drop on mixed earnings; Caterpillar sinks
Obama, Pakistani PM to meet amid easing tensions

Print this Page Print this Page  |  Bookmark and Share
<< Back

Daily Journal Quick Poll
What do you think of the Warriors' proposal to move to Mission Bay?

Smart, a better location
Still like the waterfront arena concept
Wish they would stay in Oakland
Anywhere in San Francisco is good
How about the Burlingame waterfront?


Tabbed Structure - Regular
  • The Daily Journal's office is located at:

    800 S. Claremont St., Ste. 210,
    San Mateo, CA 94402
    Phone: (650) 344-5200
    Fax: (650) 344-5290

    news [at]

These are currently our most viewed stories
To Report News - Click Here
Warriors formally announce plans for new arena in Mission Bay
The Golden State Warriors today formally announced their plans to build a new arena in San Francisco..
Biden: Russia must 'stop talking and start acting'
KIEV, Ukraine — U.S. Vice President Joe Biden warned Russia on Tuesday that "it's time to stop tal..
High court upholds Michigan affirmative action ban
WASHINGTON — The Supreme Court on Tuesday upheld Michigan's ban on using race as a factor in colle..
More >>  
©2014 San Mateo Daily Journal
San Mateo County notice of bulk sale